Dubai-based oil and gas offshore vessel operator Stanford Holding, part of the Stanford Marine Group (SMG), has secured an AED1.2bn ($327m) Islamic loan.

The murabaha structured sharia-compliant syndication attracted a lot of interest and was oversubscribed.

The financing consolidates SMG’s existing conventional and Islamic facilities into a single tranche facility. It will reduce SMG’s cost of finance.

SMG secured a five-year $300m syndicated conventional loan in 2013, also to replace existing facilities.

The company is 51 per cent owned by a fund managed by Dubai’s Abraaj Group. The remaining 49 per cent is held by Abu Dubai’s Aha Capital.

Dubai’s Noor Bankwas initial mandated lead arranger, sole underwriter and sole bookrunner.

Qatar’s Barwa Bank, Abu Dhabi’s First Gulf Bank and Qatar Islamic Bank joined as mandated lead arrangers. Ajman Bank and Sharjah’s United Arab Bank were also lead arrangers.